Peru leader skips summits amid mine dispute

Peruvian President Ollanta Humala on Friday canceled a trip to Venezuela and Mexico for two regional summits as a dispute over a $4.8 billion gold mining project dragged on in the north of the country. Humala had been due in Caracas for the inaugural meeting of the Community of Latin American and Caribbean States, a bloc that excludes the United States and Canada. He was then to meet leaders of Chile, Colombia and Mexico in Merida. The Peruvian leader officially canceled his trip due to his "domestic agenda." Despite the suspension earlier this week of the so-called Conga project, an ambitious mining initiative operated by US mining giant Newmont in the Cajamarca department of mountainous northern Peru, the conflict is raging on. Protests continued Friday in the area against the project, which Humala has backed, although a series of roadblocks set up by the demonstrators had eased. Activists have called for talks with government officials, the mining group and local residents, who are fearful the mine would compromise their water supply. But they want scrapping the project altogether to be an option on the table, something which Humala's government has refused to consider. The conflict goes to the heart of the problems Humala faces in trying to balance the needs of the mainly poor people who elected him with the demands of the mining industry, Peru's main engine of economic growth. Mining in Peru last year generated $15 billion, and this year mining exports are expected to be above $25.5 billion, according to government figures. Protests had raged throughout the Cajamarca department for the better part of a week, with a mob setting fire to a local warehouse and the main airport being forced to close. At least 10 people were injured in Tuesday's protests, which brought the department to a near-standstill, before the suspension of the project was announced.